Press releases

2021 Results: Post tax profit exceeds £2bn for the first time, with EPS of 34p, up 19% on 2019, and ROE of 20%

Legal & General has delivered another strong set of results, with operating profit excluding mortality releases up 11% to £2,262m (2020: £2,041m), consistent with the “double-digit” guidance we provided at H1. This marks a return to our long term rate of growth, having been resilient through the pandemic.

9 Mar 2022

Full press release and analyst pack

Nigel Wilson, Group Chief Executive: "In 2021, cash and capital generation and book value per share were all up over 10% year on year, and we delivered EPS of 34.19p, DPS of 18.45p and a return on equity of 20.5%. We have a track record of value creation and a longstanding commitment to Inclusive Capitalism and ESHG. The expected reform of Solvency II, the roll-out of the UK government’s levelling up programme, and our growing international businesses underscore our confidence in our ability to continue delivering on a broad range of profitable growth opportunities."
Strong financial performance1
  • Profit after tax2 of £2,050m, up 28% (2020: £1,607m)
  • EPS3 of 34.19p, up 72% on 2020 (19.84p) and up 19% on 2019 (28.66p)
  • Return on equity of 20.5% (2020: 17.3%)
  • Operating profit of £2,262m, up 11% (2020: £2,041m)4
  • Solvency II coverage ratio5 of 187% (2020: 175%)
  • As at 7th March 2022 we estimate the coverage ratio was 198%6
  • Full year dividend of 18.45p, up 5% (2020: 17.57p), consistent with our stated ambition
Growing contribution to our five-year (2020-2024) ambitions7
  • Cash generation of £1.7bn, up 12%. Capital generation of £1.6bn, up 12%
  • On track to achieve our cumulative cash and capital ambitions of £8.0-9.0bn by 2024
  • On track to achieve our cumulative dividend ambition of £5.6-5.9bn by 2024
Good new business volumes and strong net flows
  • Global PRT new business premiums of £7.2bn (2020: £8.8bn)
  • LGC alternative AUM up 10% to £3.4bn (2020: £3.1bn)
  • LGIM AUM up 11% to £1.4tn, of which £479bn (34%) is International
  • LGIM external net flows of £34.6bn, 85% from International clients, up 70% (2020: £20.4bn)
  • Individual annuity premiums up 5% to £957m (2020: £910m)
  • Lifetime mortgage and retirement interest only advances up 7% to £848m (2020: £791m)
  • LGI UK & US retail protection annual premiums up 14% to £291m (2020: £255m)

  1. The Group uses a number of Alternative Performance Measures (including operating profit, net release from operations, return on equity and LGIM AUM) to enhance understanding of the Group’s performance. These are defined in the glossary, on pages 94 to 98 of this report.
  2. Profit after tax attributable to equity holders.
  3. EPS excludes 2019/2020 mortality reserve releases and the financial impact of the Mature Savings disposal in 2020.
  4. 2020 operating profit of £2,041m excludes one-off mortality release of £177m.
  5. Solvency II coverage ratio on a “proforma view”. In previous years, the capital position was shown on a “shareholder view”, where the contribution from the final salary pension schemes was excluded from the group position. The impact of excluding the contribution is now less than 1% and so, going forward we will just report on a proforma basis.
  6. Coverage ratio before the payment of the 2021 final dividend.
  7. Cash generation defined as net release from operations and Capital generation defined as Solvency II operational surplus generation. Growth shown on continuing operations.

Further information

EH photo.jpg

Ed Houghton

Group Strategy & Investor Relations Director

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Sujee Rajah


Investor Relations


John Godfrey

Director of Levelling Up (2006 - 2023)

Group Communications

T: 020 3124 2090

Email John Godfrey

Notes to editors

Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.

1Data as at 31 December 2023.